PROCURE TO PAY REPORTS

April 2017
Cindi Stinebaugh
COURSE CONTENT
• Objectives
• Resources
• Procure-to-Pay Postings Document
• Flow of PO’s on Reports
• ME23N Display Purchase Order T-code in SAP
• Ariba Reports - Invoice Reconciliation Report,
IRE Approval Only Report
• SAP Reports - Open PO Report, Blocked Invoice
Report, GR/IR Clearing Report, Open
Commitments, Vendor Invoice Report
COURSE OBJECTIVES
Upon completion of this course you will:
• Understand where to find resources on procure
to pay reports
• Understand how purchase orders flow through
the FM ledger
• Understand the procure to pay reports and how
to work them
RESOURCES

Business@Purdue — Purchasing page

– Process Documents
– QRC’s
– Training documents
– Purchase Order Commitments – All Postings

Business Manager Task Checklist (Procurement Tab)

Procure-to-Pay Helpdesk or by phone 765-49-47279

PROCURE TO PAY POSTINGS

Postings document
FLOW OF PO’S ON REPORTS
***Invoices will only appear on reports if an exception is raised. If the invoice is less than,
equal to or within the tolerance of the PO quantity and price; and has been received in
Ariba prior to the invoice posting, the invoice will pass to SAP without an exception being
raised.

Reports in Ariba – these reports need to be cleared before the invoice will pass to
SAP
Invoice Reconciliation Report – Exception in Reconciling status
• Exceptions need to be reconciled on this report
– once the exception is reconciled the invoice reconciliation document will move to
approving status
• Review report to catch any exceptions that may have been referred/deferred in
error
– No exceptions should ever be referred/deferred
– Also, there could be exception assigned to someone who has left the department.

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay
SharePoint site.
FLOW OF PO’S ON REPORTS
***Invoices will only appear on reports if an exception is raised. If the invoice is less than,
equal to or within the tolerance of the PO quantity and price; and has been received in
Ariba prior to the invoice posting, the invoice will pass to SAP without an exception being
raised.

IRE Approval Only Report – Exceptions in Approving status

• Exceptions need to be approved before they will move to paying status and
transfer to SAP to pay the supplier
• Invoice Reconcilers approve the PO Received Quantity exception (the receiving
exception)
• Fiscal Approvers approve any fiscal exception such as PO Price, PO Quantity,
Shipping, Special Handling, PO Received Line Amount

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay
SharePoint site.
FLOW OF PO’S ON REPORTS

• Open PO – PO appears here first until it is fully

received in SAP or canceled

• Blocked Invoice – if an invoice is blocked for

any reason in SAP (e.g. receipt not posted in
SAP or the invoice is Out of Tolerance for
quantity or price)

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay
SharePoint site.
FLOW OF PO’S ON REPORTS
• GR/IR Clearing –
• A PO will appear on the GR/IR if the quantity for the GR
(Goods receipt) does not match the quantity for the IR (Invoice
receipt).
• A Goods Receipt and No Invoice Receipt
• An Invoice Receipt and No Goods Receipt
 NOTE: The dollar amount does not cause a PO to appear on the GR/IR,
only quantity

• Vendor Invoice Report – Open Invoices, In relationship to PO’s this

report should be checked prior to closing any accounts. If a PO is
has an open invoice the account should not be closed until the
payment is completed or the payment will be stopped from being sent
to the supplier

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.
INVOICE RECONCILIATION REPORT

Invoice Reconciliation Report – Exception in

Reconciling status

• Review report to catch any exceptions that may have

been referred/deferred in error
– No exceptions should ever be referred/deferred
– Also, there could be exception assigned to someone who has
left the department. Contact the Procure-to-Pay Helpdesk if
this has happened, to have the exceptions re-assigned
• Invoice Reconciliation Exceptions in Ariba - Invoice Reconcilers
QRC for detailed instructions for Invoice Reconcilers
IRE APPROVAL ONLY REPORT

IRE Approval Only Report – Exceptions in

Approving status
• Invoice Reconcilers approve the PO Received
Quantity exception (the receiving exception) this is
roughly 75-80% of the lines
• Fiscal Approvers approve any fiscal exception such as
PO Price, PO Quantity, Shipping, Special Handling,
PO Received Line Amount
• Invoice Reconciliation Exceptions – Fiscal Approver
QRC for detailed instructions for Fiscal Approvers
ME23N- DISPLAY PURCHASE ORDER

Purchase Order History Tab

• Displays any GR (Goods receipts) and IR’s (Invoice
Receipts) per line transferred to SAP from Ariba
Account Assignment Tab
• Displays the account information for the PO
Commitments for this PO
• In the top menu, Click Environment and then AC
Commitment Documents
ME23N- DISPLAY PURCHASE ORDER
OPEN PO REPORT
• This report will display all purchase orders (by line item)
that have not been fully received or canceled in SAP
o If a receipt fails to pass to SAP from Ariba, the PO will still show
on this report. Contact the Procure-to-Pay Helpdesk if a receipt
has been processed/approved in Ariba, but has not transferred to
SAP
NOTE: There is a slight delay in manually posting failed receipts by
Procurement Services staff. Look for the reply comment to the failure
message in Ariba once the receipt has been manually processed

Exception: Fisher Scientific Storeroom PO’s are a 2-Way Match and no

receipt is created/processed in Ariba. (There is about 8 months in 2016
Feb- Oct for the supplier EAC). Two-Way match PO’s are only found
on the All Postings Report.
• T-code ME23N, Display Purchase Orders which is where users can
see details for the PO’s found on this report
OPEN PO REPORT

• T-code: ZFIR_SRM_OPEN_PO_SUM
• This report is also available in the portal under
Financial Systems>Reports>AP> Open
Purchase Order Summary
• Report should be reviewed on a regular basis
by Business Office and if necessary the
Receiver to follow up if PO should be canceled
or items were physically received and then
process the receipt in Ariba
OPEN PO REPORT

NOTE: This report is ran centrally every week and posted on the Procure-to-Pay SharePoint site.
OPEN PO REPORT
OPEN PO REPORT
• Review list for your area (college, dept., cost center)
• Ariba Receivers should process the receipt in Ariba,
for those PO’s that items were physically received in
acceptable condition and payment should be made
• If a PO should be canceled, the Ariba Receiver
should follow the cancel instructions in the
Receiving in Ariba QRC, The receiver will need to
pay attention if a receipt has been processed and
needs to be reversed
• DO NOT process the receipt in Ariba for any PO’s
that have NOT been physically received
OPEN PO REPORT

• Benefits of keeping up with this report

o will remove/stop these PO’s from creating a
receiving invoice reconciliation exception and
showing up on the blocked invoice list unless
they are out of tolerance for quantity or price
o will help keep outstanding commitments under
control
o Timely movement from commitment to
expense allows appropriate overhead to follow
BLOCKED INVOICE REPORT

• Invoices will be blocked for payment for one (or

more) of three reasons on a line item basis:
– Price is out of tolerance
– Quantity is out of tolerance
– Goods receipt not posted in SAP

• ZFI_BLOCKED_INVOICE
o Procurement Services staff review this report weekly
and will contact departments, if assistance is needed.
BLOCKED INVOICE REPORT

NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.
BLOCKED INVOICE REPORT
GR/IR CLEARING REPORT
• Purchase Orders will appear, by line item, on the
GR/IR Clearing report when the quantity of the
GR does not match the quantity of the IR
– If no receipt or no invoice that equates to quantity
zero
• T-code: ZFI_GR_IR_CLEARING
• GR/IR=Goods Receipt/Invoice Receipt
• If items are in the GR/IR account, there could be
an impact positive or negative on your financial
statements
GR/IR CLEARING REPORTS

NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.
GR/IR CLEARING REPORTS
GR/IR CLEARING REPORT
• Should be reviewed by Business Office and
Receiver if necessary
• Review outstanding entries (return delivery
needed, quantity issue, goods receipt needed,
blocked invoice, other issue, credit memo needed
and invoice needed (verify items were physically
received – If not received, may have auto-
receipted and need to be reversed.)
• Use ME23N to see what has happened in SAP
(double click on PO #) verify activity in Ariba
receipts and invoices tabs
• Compare against Open PO & Blocked Invoice
notes
GR/IR CLEARING REPORT
• Action = Return Delivery Needed
• Scenario 1
PO Qty= 1
Net Goods Receipt Qty=1
Net Invoice Receipt Qty=0

– If item was returned to vendor, and no replacement

being provided, Ariba receiver should process:
• a reversal receipt (negative in accepted field) and
• note the return (positive in rejected field) in Ariba
 Receiving in Ariba QRC
GR/IR CLEARING REPORT
• Action=Invoice Receipt (IR) Needed
• Scenario 2
PO Qty=3
Net Goods Receipt Qty=3
No Invoice Receipt
• Determine actual quantity physically received.
• If no goods actually received, then process reversal
receipt in Ariba
 Receiving in Ariba QRC

– If Goods Receipt Qty=3 is accurate, then contact

vendor for invoice for Qty=3
GR/IR CLEARING REPORT
• Action=Goods Receipt (GR) Needed
• Scenario 3
PO Qty=1
No Goods Receipt
Net Invoice Receipt Qty=1

– This scenario should not happen very often and if it

does Procurement Services should be working on
posting the failed receipt in SAP.
GR/IR CLEARING REPORT
• Action=Quantity Issue
• Scenario 4
PO Qty=5
Net Goods Receipt Qty=5
Net Invoice Receipt Qty=3
• Verify quantity actually received
» If GR is correct, contact vendor for remaining invoice
receipt qty of 2.
» If GR is incorrect, process reversal for the difference
 Receiving in Ariba QRC
GR/IR CLEARING REPORT
• Action=Quantity Issue
• Scenario 5
PO Qty= 4
Net Goods Receipt Qty=2
Net Invoice Receipt Qty=4

• If GR is correct, contact vendor for credit memo or the

additional items
• If GR is incorrect and the other 2 items were physically
received, the Ariba receiver should process an additional
receipt for 2 in Ariba
GR/IR CLEARING REPORT
• Action= Quantity Issue
• Scenario 6
PO Qty=3
Net Goods Receipt Qty=3
Net Invoice Receipt Qty=5

• Accounts Payable staff will clear these based on the

approval of the PO Quantity exception in Ariba
GR/IR CLEARING REPORT
• Action= Credit Memo Needed
• Scenario 7
PO Qty=3
Net Goods Receipt Qty=0
Net Invoice Receipt Qty=3
• The invoice has been paid
• Verify the items were returned to the supplier
» If yes, either wait for the credit memo, if more than 2-3
weeks have past contact the supplier to request a credit
memo
» If the items were not return to the supplier, the Ariba
receiver should process the receipt again in Ariba
GR/IR CLEARING REPORT
• Action= Blocked Invoice
• Scenario 8
PO Qty=8
Net Goods Receipt Qty=0
Net Invoice Receipt Qty=8

• Procurement Services works these and will contact

department if assistance is needed
• The invoice has not been paid
GR/IR CLEARING REPORT
• Action=Other Issue
• Scenario 9
In most cases an account maintenance has been
completed and then there is activity to bring the GR
qty and IR qty back in balance

 Email the Procure-to-Pay Helpdesk with the PO# and

GR/IR Other Issue in the email
 Procurement Services staff will work to clear the issue
GR/IR CLEARING REPORT
• Benefits of keeping up with this report
o Account balances will be more accurate
 Prior to closing accounts especially
o Promotes work time efficiency
o Vendors will be paid in a more timely manner
VENDOR INVOICE REPORT

• Will show all invoices and credit memos

posted to a given range of cost objects,
which should make it easier for staff to
determine what invoices are still aging – or
open – and not yet paid out to the vendor.
• T-code: ZFI_VENDOR_INVOICES
VENDOR INVOICE REPORT

NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.
VENDOR INVOICE REPORT
ALL POSTINGS

• This report lists open commitments

• FMRP_RFFMEP1AX—
(variant=COMMITMENTS) this variant is
for PO’s
• This report should be reviewed by the
Business Office
o Review the issues from your other lists and
mark off this list so you do not review the same
issues
ALL POSTINGS

• This report will catch 2-Way Match

suppliers with open commitments:
• Currently - Fisher Scientific Storeroom
PO’s
• Previously - EAC Bus Rentals for 8 months
in 2016 (February-October)
ALL POSTINGS
ALL POSTINGS
CLOSING ACCOUNTS

These reports have been added to the

Closing Accounts Checklists to avoid:
• unexpected expenses after account is
closed
• ensure all commitments have been
relieved
• as well as ensuring that vendors are paid
QUESTIONS?
• Review Process documents, QRC’s and
Training materials on business@purdue –
Purchasing page
• Procure-to-Pay Helpdesk or by phone 765-
49-47279